You can go with the Hyundai Exter AMT, it is a well-equipped car, drives well and has the smoothest AMTs in the segment. The 1.2-litre, 4-cylinder naturally aspirated petrol engine is smooth, refined and linearly delivers its power. 

For a first-time car owner, Hyundai's vast network of service centres and relatively pocket-friendly after-sales service will add to your ownership experience. 

The Maruti Suzuki Baleno or even its sister car, the Toyota Glanza, would be a good option to buy. The car is spacious with comfy seats, and it is fuel-efficient too, both the manual and the automatic version (AMT). 

In our standard test cycle, we got 13.80kpl and 17.50kpl in our city and highway cycles for the manual, whereas the automated manual transmission (AMT) achieved 11.86kpl and 17.21kpl.  

The Baleno sits below 4 meters in length and is compact enough for the city. However, if you would like something smaller, consider the Hyundai Exter. It won't be as efficient, in the manual we got 9kpl and 14kpl for city and highway runs, but this is still good. Also, you will also benefit from a slightly higher seating position and a lower price.    

Switching from E10 to E20 fuel reduces fuel efficiency, especially on pre-BS6 cars, so it's no surprise that you are refuelling more frequently and spending more at the pumps. It’s best to buy a new car, and for your budget, an ICE option is the best, as all ICE cars are now E20 compliant with engines designed to run on the higher ethanol blend. 

An EV at this price point will be a compromise both in terms of size and range. For Rs. 10 lakh, go for the Hyundai Exter, which is a well-equipped car that drives exceptionally well. Being a Hyundai car, it will feel familiar as well.

• Hatchback: Maruti Suzuki Swift
• Compact sedan: Honda Amaze, Maruti Suzuki Dzire
• Compact SUV/Crossover: Maruti Suzuki Fronx, Maruti Suzuki Brezza, Hyundai Exter

You can consider the Hyundai Exter AMT. It comes with one of the smoothest AMTs in the segment, offers a comfortable ride and has precise handling. The Exter feels stable and confident on the highway, while on the highway, it is easy to maneuver in city traffic. 

It is also well equipped, with a thoughtfully designed cabin that makes excellent use of the available space.
 

Since your monthly driving is around 1000km, it will be better if you go for a diesel car. If you prefer a manual gearbox, the Tata Nexon diesel is a good option for its good ride quality. But if you want an automatic, you can consider the Hyundai Venue diesel AT. 

The ride quality of the 2025 Venue has been improved significantly, and now it gives a good ride quality on Indian roads. 

The Nexon’s automatic option is an AMT, which has noticeable gearshift jerks and can become tiring on long drives. 
In the smaller segment, the Tata Punch manual or the Hyundai Exter AMT are good alternatives. 

Exter’s AMT is one of the smoothest AMTs in the market.
 

We would recommend the Hyundai Exter for several reasons. Firstly, it's the best AMT in its class and has less ‘head nod’ because the typical interruption of power between gearshifts is the least of all AMTs. The ride and handling are quite good, and the Exter feels quite planted for its size on the highway, whilst in the city it’s nice and manoeuvrable. Lastly, it has a well-equipped cabin that makes the most of the space.